Billboard Cost Based On Malaysian States In 2024

Unlocking the full potential of your OOH advertising campaign starts with a thorough analysis of your target audience and a strategic choice of states with the highest potential for impact. By honing in on these elements, businesses can amplify their advertising ROI. While knowing your audience and positioning your ads effectively are key, let’s face it: the real game-changer is cost.

Recognizing that information on monthly OOH rental costs in Malaysia is scarce, Firstboard is here to shed some light on this. We’ll provide estimated monthly costs for each state in this article. Keep in mind, billboard and OOH costs can fluctuate due to various factors, so consider this article as a helpful guide rather than a precise calculation.

 

States With Highest Monthly Rental Costs

Based on the data gathered, Putrajaya has the most expensive monthly rentals for OOH advertising. This scarcity drives up the cost per media space compared to areas with a high density of available billboards and ads, with an average of RM 40,000 per month. Kuala Lumpur ranks second in monthly rental costs (RM 22,000), followed by Selangor in third (average monthly rental RM 17,000). Both of these states are known for their high-density areas, so making into the top three spots are no surprise, but as for Putrajaya, this might due to its limited space for OOH ds.

The high cost of OOH advertising rentals in Putrajaya can likely be attributed to several strategic factors. Firstly, the city's meticulously planned layout results in a limited number of designated OOH spaces. This factor, paired with Putrajaya's status as the administrative capital, creates intense competition from brands that seek to target a specific audience of government officials, corporate executives, and affluent residents.

Secondly, OOH placements in Kuala Lumpur and Selangor are likely situated in prime locations with excellent visibility along major roads and key landmarks. Such strategic positioning naturally commands a premium price. Furthermore, cities such as Putrajaya and Kuala Lumpur attract a demographic with high disposable income, making them the lucrative target market for luxury brands and high-end services willing to pay a significant premium for OOH advertising exposure.

 

Unexpected Discoveries

On the other hand, one surprising finding is that Johor did not rank among the top five highest rental costs for OOH advertising in Malaysia, with an average cost of only RM 10,000 per month for their media space. Possible reasons for this could include different market dynamics that influence rental pricing in the region.

Meanwhile, our OOH specialist further shared that this could be due to cost differences across various media. She added that some OOH media in Johor, such as free-standing billboards, are relatively less costly compared to those in the Klang Valley. However, the monthly rental for unipoles in Johor can be higher depending on the season.

Another potential reason behind this finding could be the audience's average income. According to a report by MIDA, Johor, despite recent economic growth, ranks 9th in average household income, falling behind states like Selangor and Kuala Lumpur. Because of this, brands targeting a different audience group might prefer the capital city, Kuala Lumpur, or highly populated cities such as Selangor and Penang.

While specific data is needed, these factors offer a possible explanation for Johor's absence from the top five most expensive OOH advertising locations. Don’t get us wrong, Johor still secured a solid 6th place in highest monthly rental costs. It’s just that we were expecting it to make it into the top 5.

 

How About The Affordable Ones?

Perlis (average of RM3,000 per month) and Terengganu (average of RM4,000 per month) mark the two states with the most affordable monthly rental rates. To justify these findings, it is likely due to the fact that this study gathered limited OOH media data on these states. That being said, the data still provides some insights. Since Perlis and Terengganu are known for their out-of-city environments, it isn't surprising to see the cost of media rental being lower than in more populated areas.

Finally, these states might have a higher concentration of traditional static billboards compared to newer digital displays. Since traditional billboards typically cost less, this could contribute to the overall affordability of OOH advertising in these locations.

 

Media Makes A Difference

One key reminder to this insight is that the numbers of media does affect the cost. For example, both Kuala Lumpur and Selangor will surely occupied with more media selections. Among these media, there will be specific OOH media that has a monthly rental that is far higher than others (as example, Giant Gantry), which is likely to increase the average monthly fees for OOH ads space.

Once again, this article aims to provide valuable insights into the intricacies of OOH advertising campaigns. However, it is crucial to emphasise that the effectiveness of an OOH campaign should not be constrained solely by the cost of rental spaces. When it comes to OOH, many factors play a significant role in ensuring a campaign's effectiveness.